1 2 3 4 5 6 7 8

KAMALA D. HARRIS Attorney General of California MARGARITA PADILLA Supervising Deputy Attorney General KIRK MCINNIS Deputy Attorney General State Bar No. 130952 1515 Clay Street, 20th Floor P.O. Box 70550 Oakland, CA 94612-0550 Telephone: (510) 622-2191 Fax: (510) 622-2270 E-mail: Kirk.McInnis@doj.ca.gov Attorneys for Plaintiff State of California (Additional Counsel on the following pages)

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1 Final Judgment on Consent (MSC 07 02593)

SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF CONTRA COSTA

PEOPLE OF THE STATE OF CALIFORNIA, Plaintiff, v. GOLDEN GATE PETROLEUM CO., a California Corporation; BAY AREA/DIABLO PETROLEUM COMPANY, a California Corporation; DENNIS OKEEFE, an individual; WESTGATE PETROLEUM COMPANY, INC., a California Corporation, and DOES 1 THROUGH 100, Defendants.

Case No. MSC 07 02593 FINAL JUDGMENT ON CONSENT Date: July 29, 2011 Time: 1:30 p.m. Dept: 17 Judge: Barry Goode Trial Date: August 22, 2011 Action Filed: November 26, 2007

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2 Final Judgment on Consent (MSC 07 02593)

NANCY E. OMALLEY District Attorney of the County of Alameda KENNETH MIFSUD State Bar No. 144000 Deputy District Attorney Consumer and Environmental Protection Division 7677 Oakport Street, Suite 650 Oakland, California 94621-1934 Telephone: (510) 569-9281 Facsimile: (510) 569-0505 MICHAEL L. RAMSEY District Attorney of the County of Butte HAROLD M. THOMAS State Bar No. 131212 Deputy District Attorney Environmental Protection Unit 25 County Center Drive Oroville, California 95965 Telephone: (530) 538-7411 Facsimile: (530) 538-7071 JOHN R. POYNER District Attorney of the County of Colusa MATTHEW MACLEAR State Bar No. 209228 Deputy District Attorney 547 Market Street Colusa, California 95932 Telephone: (530) 458-0545 Facsimile: (530) 458-8265 MARK A. PETERSON District Attorney of the County of Contra Costa LAUREN R. WIXSON State Bar No. 117178 Deputy District Attorney 900 Ward Street Martinez, CA 94553-0150 Telephone: (925) 957-8786 Facsimile: (925) 646-4683 ROBERT MALONEY District Attorney of the County of Glenn MATTHEW MACLEAR State Bar No. 209228 Deputy District Attorney P. O. Box 430 Willows, California 95988 Telephone: (530) 934-6525 Facsimile: (530) 934-6529

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3 Final Judgment on Consent (MSC 07 02593)

PAUL V. GALLEGOS District Attorney of the County of Humboldt MATTHEW MACLEAR State Bar No. 209228 Deputy District Attorney 825 Fifth Street Eureka, California 95501 Telephone: (707) 445-7411 Facsimile: (707) 445-7416 GREGG STRICKLAND District Attorney of the County of Kings MATTHEW MACLEAR State Bar No. 209228 Deputy District Attorney 1400 West Lacey Boulevard Hanford, California 93230 Telephone: (559) 582-0326 Facsimile: (559) 584-4127 DONALD ANDERSON District Attorney of the County of Lake MATTHEW MACLEAR State Bar No. 209228 Deputy District Attorney 255 North Forbes Street Lakeport, California 95453 Telephone: (707) 263-2251 Facsimile: (707) 263-2328 DAVID EYSTER District Attorney of the County of Mendocino MATTHEW MACLEAR State Bar No. 209228 Deputy District Attorney 100 North State Street Ukiah, California 95482 Telephone: (707) 463-4211 Facsimile: (707) 463-4687 DEAN D. FLIPPO District Attorney of the County of Monterey ANNE M. MICHAELS State Bar No. 136134 ROBERT J. LAUCHLAN, JR. State Bar No. 118545 Deputy District Attorney Environmental Prosecution Unit 1200 Aguajito Road, Room 301 Monterey, California 93940 Telephone: (831) 647-7770 Facsimile: (831) 647-7762

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4 Final Judgment on Consent (MSC 07 02593)

GERALD T. SHEA District Attorney of the County of San Luis Obispo STEVEN D. VON DOHLEN State Bar No. 182499 Deputy District Attorney County Government Center, Room 450 San Luis Obispo, California 93408 Telephone: (805) 781-5800 Facsimile: (805) 781-4307 STEPHEN WAGSTAFFE District Attorney of the County of San Mateo JOHN E. WILSON State Bar No. 095602 Deputy District Attorney In Charge 400 County Center, 3rd Floor Redwood City, California 94063 Telephone: (650) 363-4098 Facsimile: (650) 363-4873 JEFF ROSEN District Attorney of the County of Santa Clara TINA NUNES OBER State Bar No. 162750 Deputy District Attorney County Government Center, West Wing 70 W. Hedding Street San Jose, California 95110 Telephone: (408) 792-2638 Facsimile: (408) 287-5076 DONALD DU BAIN District Attorney of the County of Solano CRISELDA B. GONZALEZ State Bar No. 146493 Deputy District Attorney Consumer and Environmental Protection Unit Hall of Justice 600 Union Avenue Fairfield, California 94533 Telephone: (707) 421-6800 Facsimile: (707) 421-7986 JILL RAVITCH District Attorney of the County of Sonoma ANN GALLAGHER WHITE State Bar No. 165419 Deputy District Attorney 2300 County Center Drive, Suite B-170 Santa Rosa, California 95403 Telephone: (707) 565-3148 Facsimile: (707) 565-3499

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5 Final Judgment on Consent (MSC 07 02593)

CARL A. ADAMS District Attorney of the County of Sutter MATTHEW MACLEAR State Bar No. 209228 Deputy District Attorney 446 Second Street Yuba City, California 95991 Telephone: (530) 822-7300 Facsimile: (530) 822-7337 PATRICK J. MCGRATH District Attorney of the County of Yuba MATTHEW MACLEAR State Bar No. 209228 Deputy District Attorney 215 Fifth Street Marysville, California 95901 Telephone: (530) 749-7770 Facsimile: (530) 749-7762

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 A.

It appearing that the Court has jurisdiction over the subject matter and the parties; that Plaintiff, THE PEOPLE OF THE STATE OF CALIFORNIA (People), by and through KAMALA D. HARRIS, Attorney General of California, MARGARITA PADILLA, Supervising Deputy Attorney General, KIRK MCINNIS, Deputy Attorney General, and the additional counsel for the PEOPLE as set forth on the STIPULATION FOR ENTRY OF FINAL JUDGMENT ON CONSENT; and Defendants, GOLDEN GATE PETROLEUM CO., a California corporation; BAY AREA/DIABLO PETROLEUM COMPANY, a California corporation; DENNIS OKEEFE, an individual; WESTGATE PETROLEUM COMPANY, INC., a California corporation, by and through its attorneys, POLLOCK & JAMES, LLP, by Mark S. Pollock, Esq., have executed a STIPULATION FOR ENTRY OF FINAL JUDGMENT ON CONSENT (Stipulation), filed concurrently with this FINAL JUDGMENT ON CONSENT (Judgment); that the Stipulation recites, among other things, the consent of the parties to the signing of this Judgment by the Court and to its filing and entry; and, therefore, upon the consent of the parties hereto, and good cause appearing for the entry of this Judgment, IT IS HEREBY ORDERED, ADJUDGED AND DECREED: JURISDICTION The Superior Court of Contra Costa County has subject matter jurisdiction and personal jurisdiction over the Parties. B. DEFINITIONS Except where otherwise expressly defined herein, all terms in this Judgment shall be interpreted consistent with Chapters 6.5, 6.7, and 6.95 of Division 20 of the Health and Safety Code and the regulations promulgated under these chapters. 1. Covered Facilities means the Defendants facilities in the State of

California listed in Attachment A. 2. Certified Unified Program Agency or CUPA is the agency certified by

the California Environmental Protection Agency pursuant to the requirements of Chapter 6.11 of the Health and Safety Code to implement certain State of California environmental programs within the local agencys jurisdiction. As used in this Judgment, CUPA includes any Participating
6 Final Judgment on Consent (MSC 07 02593)

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Agency or Unified Program Agency. 3. Hazardous Materials Business Plan or HMBP as used herein, means a

separate plan for each facility, site, or branch of business which meets the requirements of Health and Safety Code section 25504. 4. Hazardous Material, as used herein, means hazardous material as that

term is used in Health and Safety Code section 25501(p). 5. Hazardous Waste, as used herein, shall have the definition as provided

for in Health and Safety Code section 25117. 6. Hazardous Waste Management, and management as used herein, shall

have the definition as provided for in Health and Safety Code section 25117.2. 7. Underground Storage Tank System or UST system, as used herein,

shall have the definition provided by Health and Safety Code section 25281(z). 8. Attachment C. C. PAYMENTS OF CIVIL PENALTIES AND COSTS Defendants are jointly and severally liable for a total of six million dollars ($6,000,000), to be allocated and to be paid as set forth herein. Defendants shall deliver all required payments by cashiers check to the California Department of Justice, Office of the Attorney General, attention Kirk McInnis, Deputy Attorney General, 1515 Clay Street, 20th, Floor, Oakland, CA 94612, for distribution pursuant to the terms of Attachment B of this Judgment. 1. REIMBURSEMENT OF COSTS OF INVESTIGATION AND ENFORCEMENT 1.1. Within thirty (30) days of entry of this Final Judgment on Consent, Pledged Assets, as used herein, means those assets referenced in

Defendants shall pay fifty thousand dollars ($50,000) for reimbursement of attorneys fees, costs of investigation, and other costs of enforcement. Defendants shall pay an additional three hundred fifty thousand dollars ($350000) for reimbursement of attorneys fees, costs of investigation, and other costs of enforcement by December 31, 2011. Defendants shall pay an additional four hundred ninty five thousand three hundred severy dollars ($495,370) for
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reimbursement of attorneys fees, costs of investigation, and other costs of enforcement by June 1, 2015. These funds will be allocated as set forth in Attachment B, incorporated by reference. 2. INITIAL CIVIL PENALTIES 2.1. In addition to the payments made in accordance with Section C.1.1,

Defendants shall pay a total of two million one hundred four thousand six hundred thirty dollars ($2,104,630) as Penalty Payments for civil penalties. These funds shall be paid as follows: 1) a payment of four hundred seventy-five thousand dollars ($475,000) shall be made on or before June 1, 2012; 2) a payment of six hundred thousand dollars ($600,000) shall be made on or before June 1, 2013; 3) a payment of seven hundred twenty-five thousand dollars ($725,000) shall be made on or before June 1, 2014; and 4) a final payment of three hundred four thousand six hundred thirty dollars ($304,630) shall be made on or before June 1, 2015. These funds will be allocated as set forth in Attachment B, incorporated by reference. 3. SUSPENDED PENALTY 3.1. Of Defendants total liability of six million dollars ($6,000,000),

three million dollars ($3,000,000) shall be suspended as set forth below. 3.1 (a) If the People determine that Defendants have violated one or more injunctive provisions, the People shall notify Defendants of the violation and request payment of a Suspended Penalty. The appropriate Suspended penalty amounts for the violations identified in Sections F. 2.1 to F. 2.11 is two thousand five hundred dollars ($2,500) for the first day of violation and two thousand five hundred dollars ($2,500) per day after the period to correct the violation provided in Sections F. 2.1 to F. 2.11, if any, has expired. The appropriate Suspended Penalty amounts for the violations identified in Sections F. 2.12 to F. 2.33 is one thousand dollars ($1,000) for the first day of violation and one thousand dollars ($1,000) per day after the period to correct the violation provided in Sections F 2.12 to F. 2.33, if any, has expired. The appropriate Suspended Penalty amounts for the violations identified in Sections F. 2.34 to F. 2.44. is five hundred dollars ($500) for the first day of violation and five hundred dollars ($500) per day after the period to correct the violation provided in Sections F 2.34 to F. 2.44, if any, has expired.
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3.1(b). If Defendants contend that the alleged violation did not occur or that Defendants are not responsible for the alleged violation due to a Force Majeure as defined in Section G, the People may file a noticed motion as set forth in Section H, requesting that the Court impose Suspended Penalties. Defendants retain the right to oppose the motion on the grounds that the alleged violation did not occur or that Defendants are not responsible for the alleged violation due to a Force Majeure as defined in Section G. At least ten (10) days before filing a motion seeking a Suspended Penalty, the People shall seek to meet and confer in good faith with Defendants to attempt to resolve the matter without judicial intervention. 3.1(c). If the Court finds that one or more Defendants have engaged in a violation on one or more occasions, for each day of each violation, it the Court shall require Defendants to pay a Suspended Penalty as described in Section 3.1(a). The Parties will not be permitted to request the Court to reduce, increase, or otherwise modify the amount of the Suspended Penalty. Suspended Penalties may be imposed until the entire Suspended Penalty of three million dollars ($3,000,000.00) is exhausted. 3.2. Defendants shall pay a Suspended Penalty within thirty (30) days of

notification of the violation as provided in Section 3.1(a). If Defendants contend that the alleged violation did not occur or that Defendants are not responsible for the alleged violation due to a Force Majeure as defined in Section G, and the People seek judicial intervention under Section 3.1(b), Defendants shall pay a Suspended Penalty within thirty (30) days of the entry of an order finding that Defendants committed a violation. 3.3. Five years from entry of this Judgment, any amount of the original

Suspended Penalty that has not been paid out under this Judgment shall be excused. 4. LATE PAYMENTS 4.1. Defendants shall be and are hereby deemed liable for a stipulated

civil penalty of ten thousand dollars ($10,000.00) for each day that a payment required pursuant to this Judgment is late. If a required payment is more than thirty (30) days late, it constitutes an Event of Default under Section E. ///
9 Final Judgment on Consent (MSC 07 02593)

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D.

JOINT AND SEVERAL LIABILITY Defendants, and each of them, are jointly and severally liable for all payments required

pursuant to this Judgment. E. FINANCIAL ASSURANCE 1. As security for their prompt and complete payment of their obligations

under this Judgment, Defendants, and each of them, does assign, grant, and pledge all of their currently unencumbered interest in each and every Pledged Asset referenced in Attachment C. It is understood Defendants have the right to substitute a new primary lender for up to 120 percent of the current indebtedness. The amount of Defendants indebtedness may increase further as penalty is paid down under this Agreement, subject to negotiation between the parties. Defendants pledge all the equity interest in a 1999 Beech King Aircraft Raytheon C90A LJ-1572 N931GG, subject to Security Agreement and Promissory Note No. 0011438, Schedule No. 0011438001, dated December 16, 2005, and will execute all documents necessary to secure that pledge. 1.1. Defendants, and each of them, hereby grant and pledge to the

People a continuing lien and security interest in the Pledged Assets which shall continue in effect to secure Defendants performance of their obligations under Section C of this Judgment. 1.2. This Section shall remain in full force and effect until all payments

required under Section C have been made and shall not be limited, impaired, or otherwise affected in any way by any delay by the People in making any demand on any Defendant for, or otherwise delay in enforcing, performance or payment of any of Defendants obligations under this Judgment 2. Event of Default is defined to include any of the following conditions: 2.1. when due; 2.2. Misrepresentation of the financial status of any Defendant in the Failure to make any payment under Section C of this Judgment

course of the settlement negotiation leading to the resolution of this matter; ///
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 follows: 3.

2.3.

Institution of any legal proceeding by any Defendant seeking to

adjudicate him or it bankrupt or insolvent, or seeking dissolution, liquidation, winding up, reorganization, adjustment, protection, or relief of his or its debts under any law relating to bankruptcy, insolvency, reorganization, or relief of debts or seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian, or similar person for a Defendant; 2.4. interest in any Pledged Asset; 2.5. Institution by any third party of any legal proceeding seeking to Any action or attempt to lessen, reduce, or subordinate the Peoples

adjudicate any Defendant bankrupt or insolvent, or seeking dissolution, liquidation, winding up, reorganization, adjustment, protection, or relief of any Defendants debts under any law relating to bankruptcy, insolvency, reorganization, or relief of debts or seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian, or similar person for a Defendant; 2.6. Dissolution of any Defendant;

Upon occurrence of an Event of Default, the People, in their sole and

absolute discretion and option, may avail themselves of any and all remedies available under law, including but not limited to the rights of a secured party under the Uniform Commercial Code. F. PERMANENT INJUNCTIVE RELIEF 1. GENERAL INJUNCTIVE PROVISIONS

Defendants, and each of them, shall be, and are hereby, permanently enjoined as

1.1.

Pursuant to the provisions of the Health and Safety Code sections

25181, 25184, 25299.01, 25516, 25516.2 and Business and Professions Code section 17203, Defendants are permanently enjoined to comply with Chapters 6.5, 6.7, and 6.95 of Division 20 of the Health and Safety Code and the regulations promulgated under these chapters at the Covered Facilities. Knowing failure to comply with this injunction, and the specific injunctive provisions that follow, may subject Defendants to sanctions, including, but not limited to, contempt. ///
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2.

SPECIFIC INJUNCTIVE PROVISIONS 2.1. Defendants shall not perform work on UST systems without all

necessary permits or authorization from the appropriate permitting agencies. This provision shall not apply to the existing dispute between Defendants and Contra Costa County with respect to the Brentwood facility. The issue of whether or not the Brentwood facility has a permit and for what period of time, if any, will not be subject to the injunctive enforcement provisions of this Final Judgment on Consent in this case and is not a Covered Matter defined and addressed by this Final Judgment on Consent 2.2. Defendants shall not raise, alter the position of, tamper with,

disable, or otherwise render nonfunctional or ineffective, sensors in spill containment structures, under dispenser containment, and sumps. 2.3. Defendants shall at all times assure the sensors in spill containment

structures, under dispenser containment, and sumps are placed in a position so that the sensor is capable of detecting a leak at the earliest possible opportunity. Defendants shall undertake measures to regularly inspect, at least monthly, the UST system to assure all leak detection systems are properly placed. Defendants shall maintain a log to memorialize such inspections and the results thereof. Defendants shall instruct its employees if during the course of such sensor inspections or at any other time employees may otherwise observe a sensor which is improperly placed, to immediately notify supervisory personnel that a sensor is not properly placed. If a sensor is not properly placed or is not functioning as required, Defendants shall shut the UST system down immediately. Defendants shall not place the UST system back into operation until the sensor has been properly positioned, replaced or repaired. 2.4. If any UST system fails a secondary containment test, and where

Defendants reasonably determine that a release to the environment is not possible as a result of the failure, Defendants may continue to operate the UST system for a reasonable time until repairs are made, unless otherwise directed by the appropriate CUPA. A reasonable time within which to repair a secondary containment system is 30-120 days, depending on the type and extent of the failure, the repairs needed and the time needed by the CUPA to review any necessary repair
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applications. 2.5. If any UST system fails a secondary containment test, and where

the failure would indicate to a reasonable operator that there is a potential for release to the environment, Defendants shall immediately take all appropriate action to prevent a release, including but not limited to, shutting down the effected portion of the UST system. 2.6. Defendants shall at all times ensure that all secondary containment

systems are constructed so that any releases to the secondary containment system will flow to a collection sump as required by California Code of Regulations, title 23, section 2636(c)(1). If the appropriate CUPA finds a violation of California Code of Regulations, title 23, section 2636(c)(1), Defendants shall correct the violation within seven (7) days or, if a permit is required from the CUPA, shall submit the necessary documentation to obtain the permit within seven (7) days. 2.7. Defendants shall at all times have a means of monitoring for water

intrusion by precipitation or infiltration into secondary containment as required by Health and Safety Code section 25291(e). If the appropriate CUPA finds a violation of Health and Safety Code section 25291(e), Defendants shall correct the violation within seven (7) days or, if a permit is required from the CUPA, shall submit the necessary documentation to obtain the permit within seven (7) days. 2.8. Defendants shall at all times timely notify the appropriate CUPA of

any unauthorized releases from a diesel vent line and provide a report describing the release and the corrective actions as required by Health and Safety Code section 25295 and California Code of Regulations, title 23, sections 2650 and 2652. 2.9. Defendants shall equip all UST systems with a spill containment

structure and overfill prevention system as required by California Code of Regulations, title 23, section 2635(b). The overfill prevention system shall not allow for manual override, as required by California Code of Regulations, title 23, section 2635(b)(2). 2.10. Defendants shall implement corrections specified in any CUPA

inspection report within 30 days after receiving an inspection report, as required by California
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Code of Regulations, title 23, section 2712(f). 2.11. Defendants shall at all times have an operational audible/visual

alarm system connected for continuous monitoring as required by California Code of Regulations, title 23, sections 2632 (c)(2)(B) and 2636(f)(1). 2.12. Defendants shall notify the appropriate authority prior to changing

monitoring procedures, such as replacing leak detection equipment and/or monitoring. 2.13. Defendants shall at all times submit Monitoring Response Plans

pursuant to California Code of Regulations, title 23, section 2632. If the appropriate CUPA finds a violation of California Code of Regulations, title 23, section 2632, Defendants shall correct the violation within thirty (30) days. 2.14. Defendants shall test secondary containment systems installed prior

to January 1, 2001 every thirty-six months, in accordance with California Code of Regulations, title 23, section 2637(a). If the appropriate CUPA finds a violation of California Code of Regulations, title 23, section 2637(a), Defendants shall correct the violation within fifteen (15) days. 2.15. Defendants shall at all times have documentation on-site regarding

monitoring system alarms and action taken in response to alarms, if any, available for review as required by California Code of Regulations, title 23, section 2712. If the appropriate CUPA finds a violation of California Code of Regulations, title 23, section 2712, Defendants shall correct the violation within thirty (30) days. 2.16. Defendants shall annually perform online leak detection tests as

required by California Code of Regulation, title 23, section 2636(f)(2). If the appropriate CUPA finds a violation of California Code of Regulations, title 23, section 2636(f)(2), Defendants shall correct the violation within fifteen (15) days. 2.17. Defendants shall annually perform pipeline integrity tests as

required by California Code of Regulation, title 23, section 2636(f)(4). If the appropriate CUPA finds a violation of California Code of Regulations, title 23, section 2636(f)(4), Defendants shall correct the violation within fifteen (15) days.
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 containment sumps.

2.18.

Defendants shall implement and maintain a monitoring program for

their pressurized product piping, other than pressurized piping contained in under-dispenser containment, that is fail safe and shuts down the pump when a leak is detected, as required by California Code of Regulations, title 23, section 2636(f)(5)(B). If the appropriate CUPA finds a violation of California Code of Regulations, title 23, section 2636(f)(5)(B), Defendants shall correct the violation within fifteen (15) days. 2.19. Defendants shall annually test and certify UST monitoring systems

in accordance with California Code of Regulations, title 23, section 2638. If the appropriate CUPA finds a violation of California Code of Regulations, title 23, section 2638, Defendants shall correct the violation within fifteen (15) days. 2.20. Defendants shall at all times notify the appropriate CUPA in

advance of upgrades of UST systems, including replacement of spill containers 2.21. Defendants shall not allow liquid and debris to accumulate in

2.22.

Defendants shall at all times maintain monitoring and maintenance

records pursuant to California Code of Regulations, title 23, section 2712(b). If the appropriate CUPA finds a violation of California Code of Regulations, title 23, section 2712(b), Defendants shall correct the violation within thirty (30) days. 2.23. Defendants shall at all times provide adequate training to all

employees to respond to a hazardous material spill or release from a UST system, including familiarizing employees with the UST monitoring plan and release report procedures in the HMBP, pursuant to Health and Safety Code section 25504. If the appropriate CUPA finds a violation of Health and Safety Code section 25504, Defendants shall correct the violation within thirty (30) days. 2.24. Defendants shall at all times notify the appropriate CUPA of

changes in the usage of USTs, including a change in the storage of new hazardous substances, as required by Health and Safety Code section 25286. If the appropriate CUPA finds a violation of Health and Safety Code section 25286, Defendants shall correct the violation within thirty (30)
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days. 2.25. Defendants shall at all times submit accurate as-built drawings for

variations to the approved plans including remote monitoring sumps, remote fill lines for waste oil tanks, remote alarm panels, and monitoring sensors as required by California Code of Regulations, title 23, section 2711(a)(8). If the appropriate CUPA finds a violation of California Code of Regulations, title 23, section 2711(a)(8), Defendants shall correct the violation within thirty (30) days. 2.26. Defendants shall at all times submit documentation to show

compliance with state and federal financial responsibility requirements applicable to underground storage tanks containing petroleum as required by California Code of Regulations, title 23, section 2711(a)(11). If the appropriate CUPA finds a violation of California Code of Regulations, title 23, section 2711(a)(11), Defendants shall correct the violation within thirty (30) days. 2.27. Defendants shall at all times inform the appropriate CUPA of

changes to the designated underground storage tank operator as required by California Code of Regulations, title 23, section 2715(a). If the appropriate CUPA finds a violation of California Code of Regulations, title 23, section 2715(a), Defendants shall correct the violation within thirty (30) days. 2.28. Defendants shall at all times cause the designated underground

storage tank operator to provide facility employee training as required by California Code of Regulations, title 23, section 2715(f). If the appropriate CUPA finds a violation of California Code of Regulations, title 23, section 2715(f), Defendants shall correct the violation within fifteen (15) days. 2.29. Defendants shall at all times maintain a list of facility employees

who have been trained by the designated underground storage tank operator and provide a list of facility employees who have been trained to the local agency upon request as required by California Code of Regulations, title 23, section 2715(f)(3). If the appropriate CUPA finds a violation of California Code of Regulations, title 23, section 2715(f)(3), Defendants shall correct
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the violation within thirty (30) days. 2.30. Defendants shall provide to the appropriate CUPA the bi-annual

line integrity test results for all remote fill lines as required by California Code of Regulations, title 23, section 2643(e). If the appropriate CUPA finds a violation of California Code of Regulations, title 23, section 2643(e), Defendants shall correct the violation within fifteen (15) days. 2.31. Defendants shall submit UST permit application-Form A and UST

permit application-Form B to the local agency as required by California Code of Regulations, title 23, section 2711(c). If the appropriate CUPA finds a violation of California Code of Regulations, title 23, section 2711(c), Defendants shall correct the violation within thirty (30) days. 2.32. Defendants shall at all times monitor the UST system as specified

on the permit as required by Health and Safety Code section 25293. 2.33. Defendants shall at all times provide training to employees pursuant

to California Code of Regulations, title 22, section 66265.16. If the appropriate CUPA finds a violation of California Code of Regulations, title 22, section 66265.16, Defendants shall correct the violation within thirty (30) days. 2.34. Defendants shall at all times maintain documentation of training of

employees pursuant to California Code of Regulations, title 22, section 66265.16. If the appropriate CUPA finds a violation of California Code of Regulations, title 22, section 66265.16, Defendants shall correct the violation within thirty (30) days. 2.35. Defendants shall at all times properly label containers of hazardous

waste as required by California Code of Regulations, title 22, section 66262.34. 2.36. Defendants shall at all times keep containers of hazardous waste

closed except when removing or adding hazardous waste as required by California Code of Regulations, title 22, section 66265.173. 2.37. Defendants shall at all times maintain adequate aisle space in

hazardous waste accumulation areas as required by California Code of Regulations, title 22, section 66265.35.
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2.38.

Defendants shall establish/implement a HMBP as required by

Health and Safety Code section 25503.5. If the appropriate CUPA finds a violation of Health and Safety Code section 25503.5, Defendants shall correct the violation within fifteen (15) days. 2.39. Defendants shall submit/update HMBPs as required by Health and

Safety Code section 25505. If the appropriate CUPA finds a violation of Health and Safety Code section 25505, Defendants shall correct the violation within fifteen (15) days. 2.40. Defendants shall at all times have an emergency coordinator as

required by California Code of Regulations, title 22, section 66265.55. 2.41. Defendants shall not manage hazardous waste without an

Environmental Protection Agency Identification number as required by California Code of Regulations, title 22, section 66262.12(a). If the appropriate CUPA finds a violation of California Code of Regulations, title 22, section 66262.12(a), Defendants shall correct the violation within thirty (30) days. 2.42. Defendants shall keep required copies of Uniform Hazardous Waste Manifests for three (3) years as required by California Health and Safety Code section 25160.2(b)(3). 2.43. Defendants shall not store hazardous waste on-site at any of the

Covered Facilities longer than ninety (90) days without a permit as required by Health and Safety Code section 25201(a). 3. ENVIRONMENTAL COORDINATOR 3.1. Defendants shall employ and maintain a corporate officer or

employee knowledgeable in the California environmental laws that are the subject of this Judgment, as an Environmental Coordinator. The Environmental Coordinators responsibility shall be to manage Defendants compliance with the injunctive terms in this Judgment. The duties of the Environmental Coordinator shall include, collecting and maintaining copies of all written advisements of violation, including Notices of Violation (NOVs) and inspection reports, issued or performed by the CUPAs, relating to the Covered Facilities for a period of five (5) years and to undertake good faith efforts to assess Defendants compliance with applicable laws and
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regulations, and to advise Defendants personnel on compliance with all applicable laws and regulations, and to correct any noted deficiencies or violations. 3.2. Beginning one year after the entry of this Judgment, and continuing

for five (5) years from the entry thereof, Defendants Environmental Coordinator shall submit to the People, annual status report describing Defendants program for compliance with the terms of the injunction and implementation of such compliance program, any material change made to the program in the preceding year, any NOV issued to Defendants for any of the Covered Facilities, any actions taken in response to such NOVs, and any penalties paid by Defendants with respect to such NOVs. Each such annual report shall be signed by Defendants Environmental Coordinator under penalty of perjury. G. FORCE MAJEURE 1. Defendants may assert Force Majeure as an affirmative defense in the

event it is unable to perform its obligations under this Judgment. Any event beyond the control of Defendants that prevents the performance of such an obligation despite Defendants timely and diligent efforts to fulfill the obligation is a Force Majeure event. A Force Majeure event does not include financial inability to fund or complete the work, any failure by Defendants suppliers, contractors, subcontractors or other persons contracted to perform the work for or on behalf of Defendants (unless failure to do so is itself due to a Force Majeure event), nor does it include circumstances which could have been avoided if Defendants had complied with preventative requirements imposed by law, regulation, or ordinance. H. ENFORCEMENT 1. The People may move this Court to enforce any provision of this Judgment

and to award other appropriate relief, including penalties for contempt and penalties as provided for in Section C.3, by serving and filing a regularly noticed motion in accordance with Code of Civil Procedure section 1005 (Enforcement Motion). Defendants may file an opposition and the People may file a reply. At least ten (10) calendar days before filing an Enforcement Motion, the People must seek to meet and confer with Defendants to attempt to resolve the matter without judicial intervention. To ensure that the meet and confer is as productive as possible, the People
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will identify, as specifically as the available information allows, the specific instances and dates of non-compliance, and the actions that the People believe Defendants must take to remedy that non-compliance and the amount of penalties, if any, sought by the People. 2. Imposition of penalties pursuant to this provision of this Judgment is in

addition to any enforcement action that may be taken by the People, or any state, county, or local agency, department, board or entity, or any CUPA for violations of applicable environmental laws. I. EFFECT OF CONSENT JUDGMENT 1. Except as expressly provided in Section J, nothing in this Judgment shall

be construed to preclude the People, or any state, county, or local agency, department, board or entity, or any CUPA, from exercising its authority under any law, statute, or regulation. J. MATTERS COVERED AND RESERVED CLAIMS 1. This Judgment is a final and binding resolution and settlement of all known

claims, violations, and causes of action alleged by the People in the Complaint with respect to their violations of Chapter 6.5, 6.7, and 6.95, and of all claims, violations, or causes of action related to the violations of Chapter 6.5, 6.7, and 6.95 alleged by the People which could have been asserted by the People based on the facts that are the subject of the Complaint against Defendants. The matters described in the previous sentence are Covered Matters. The People may pursue any claim that is not a covered matter (Reserved Claims). 2. Any claims, violations, or causes of action that are not based on facts

alleged in the Complaint, including but not limited to any violations that occurred after November 26, 2007 or which are not related to the Covered Facilities, are not resolved, settled, or covered by this Judgment. In addition, claims, violations, or causes of action against independent contractors or subcontractors of Defendants, if any, are not resolved by this Judgment. 3. Notwithstanding any other provision of this Judgment, any claims, or

causes of action for performance of cleanup, corrective action, or response action concerning or arising out of actual past or future releases, spills, leaks, discharges or disposal of hazardous materials, hazardous wastes, and/or hazardous substances caused or contributed to by Defendants,
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or claims or causes of action relating to the disposal of hazardous materials, hazardous wastes, or hazardous substances by Defendants, where such disposal was unknown to the People as of November 26, 2007 are not Covered Matters and are Reserved Claims. 4. In any subsequent action that may be brought in the name of the People

based on any Reserved Claims, Defendants will not assert that the failure to pursue the Reserved Claims as part of this action constitutes claim-splitting or laches or is otherwise inequitable because of this asserted failure. This Section does not bar Defendants from asserting any statute of limitations that may be applicable to any Reserved Claims or any other defense. 5. Defendants shall not to pursue any civil or administrative claims against

the People or against any agencies of the State of California, any counties in the State of California, or any CUPA, or against their officers, employees, representatives, agents, or attorneys, arising out of or related to the Complaint and the Covered Matters. K. NOTICE 1. All submissions and notices required by this Judgment shall be sent to: a. For Plaintiff:

Kirk McInnis Deputy Attorney General Office of the Attorney General 1515 Clay Street, 20th Floor P.O. Box 70550 Oakland, California 94612-0550 Kirk.McInnis@doj.ca.gov David Boyers Senior Staff Counsel State Water Resources Control Board, Office of Enforcement 1001 I Street, 16th Floor Sacramento, CA 95814 dboyers@waterboards.ca.gov /// /// ///

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b.

For Defendants:

Dennis OKeefe Bay Area/ Diablo Petroleum Company 1340 Arnold Drive, Suite 231 Martinez, CA 94553

Pollock & James, LLP 952 Jefferson St. Napa, CA 94559 Any party may change its notice and name and address by informing the other Parties in writing by certified mail. The change shall be effective upon receipt of the certified mail.

10 2. 11 that are properly addressed as provided in this section are effective upon delivery if delivered 12 personally or by overnight delivery, or are effective five (5) days following deposit in the United 13 States mail, postage prepaid if delivered by mail, or are effective the next court day that electronic 14 mail is sent before 5 p.m. (PST) to the electronic mail addresses of the designated recipients for 15 notice concurrent with sending the notice by United States mail. 16 L. 17 1. 18 Judgment shall be communicated to Defendants in writing. No oral advice, guidance, 19 suggestions, or comments by employees or officials of the People regarding submissions or 20 notices shall be construed to relieve Defendants of their obligations to obtain any final written 21 approval required by this Judgment. 22 M. 23 1. 24 neither be deemed a waiver of such provision nor in any way affect the validity of this Judgment. 25 The failure of the People to enforce any such provision shall not preclude it from later enforcing 26 the same or other provisions of this Judgment. Nor oral advice guidance, suggestions, or 27 comments by employees or officials of the People or Defendants, or people acting on behalf of 28
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All notices and communications required or permitted under this Judgment

NECESSITY FOR WRITTEN APPROVALS All notices, approvals, and decisions of the People under the terms of this

NO WAIVER OF RIGHT TO ENFORCE The failure of the People to enforce any provision of this Judgment shall

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Defendants, regarding matters covered in this Judgment shall be construed to relieve any of the Defendants of their obligations under this Judgment. N. REGULATORY CHANGES 1. Nothing in this Judgment shall excuse any of the Defendants from meeting

any more stringent requirements that may be imposed by changes in applicable law. O. APPLICATION OF JUDGMENT 1. This Judgment shall apply to and be binding upon the People and upon

each of the Defendants, their successors, assigns, directors, officers, and representatives. P. CONTINUING JURISDICTION 1. This Court shall retain continuing jurisdiction to interpret and enforce the

terms of this Judgment and to address any other matters arising out of or regarding this Judgment. Q. ABILITY TO INSPECT AND COPY RECORDS AND DOCUMENTS 1. On reasonable notice and subject to all of the defenses each of the

Defendants would have to request for documents made by subpoenas, discovery, or other formal legal process, Defendants shall permit any duly authorized representative of the People to inspect and copy Defendants respective records and documents to determine whether Defendants is in compliance with the terms of this Judgment. Nothing in this Paragraph is intended to require access to or production of any privileged documents. R. PAYMENT OF LITIGATION EXPENSES AND FEES 1. Each of the Defendants shall pay their respective attorneys fees, expert

witness fees and costs, and all other costs of litigation and investigation incurred by it and/or him in connection with this matter. S. MODIFICATION 1. This Judgment may be modified only by the Court, upon noticed motion,

or upon written consent by the Parties and approval of the Court.

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IT IS SO ORDERED. DATED: August 8, 2011

Digitally signed by Barry Goode DN: cn=Barry Goode, c=US, o=Superior Court, ou=Judge Date: 2011.08.08 16:54:43 -07'00' ______________________________________

THE HONORABLE BARRY GOODE JUDGE OF THE SUPERIOR COURT

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